Msme Loan Scheme

Target :–

Scheme Introduce for the benefit of Micro and Small Enterprises (MSEs) engaged in manufacturing activities including Food processing / Job work / Fabrication activity under the definition of MSME

Eligible Entities :–

Industrial Proprietor, Partnership, Pvt. Limited Company, LLP & OPC

Vintage :–

Minimum Business of 2 year with satisfactory track record

New Entity :–

Promoters three years in same / related line

Loan up to Rs-25 lakh – 2 years’ experience

Technically qualified – 1 years relaxation

Purpose :–

Purchase of Shop /Office Premises, Construction of godown , To meet working capital needs, Purchase of Machinery / Equipment’s setting of new unit

Type of Advance :–

Term Loan and /or Cash Credit /Bank Guarantee, Bill Discounting, Bill Purchase

Quantum of Loan :–

Minimum Rs .05 Lakhs & Maximum Limits Rs.1000 Lakhs for Micro Enterprises

Minimum Rs .05 Lakhs & Maximum Limits Rs.1000 Lakhs for Small Enterprises

Based on assessment by the bank

Working Capital assessment for Micro & Small Enterprises on turnover basis i.e. 20% of budgeted accepted turnover subject to 5% of margin from promoter

Margin :–

For Cash Credit – 25 %

For Term Loan – 25 %

For Bank Guarantee – 25 %

For Bill Discounting – up to 120 days

Primary Security :–

Assets created out of loan amount

Collateral Security:–

Equivalent to minimum 75%(Realizable Value) in the form of immovable property, either residential /or commercial or liquid security, like Banks own FDR, Surrender value of LIC policies, NSC, KVP etc. N.A. plotted land within municipal / Panchayat limit

Guarantor:–

One creditworthy guarantor

Moratorium Period :-

Maximum 6 months

Repayment :-

12 months for working capital limit

7 years for Term Loan

Rate of Interest :-

@ 11% p.a.

Processing Fee :-

1 % of loan amount

Foreclosure Charges :-

3 % if closed within period of 3 years

Disbursement :-

Cash Credit exclusive banking with bank

Term Loan Direct payment to vendor

Insurance :-

Comprehensive insurance of all assets hypothecated / mortgaged with Bank clause

Term insurance of key person

Loan File Documents As Follows

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